Contrast Indicator - universal tool for scalping and day trading
Contrast Indicator perfectly suited for scalping and long-term trade. The main principle of the indicator lies in the definition of contrast. That is, to determine the true nature of the current movement, a comparison with the movement preceding it is necessary. This approach allows to catch new movements in the market, which are likely to continue.
Characteristics of Contrast Indicator
- Platform: Metatrader4
- Currency pairs: Any
- Trading Time: Around the clock
- Timeframe: Any
- Recommended broker: Alpari, Forex4you
How it works?
Contrast Indicator consists of two parts:
- First (Contrast) - in the form of red and yellow lines on the likeness of the channel. This indicator has only one parameter in the settings - coeff. Increasing this parameter further spreads the lines between each other, and now they will need more time to cross. You can also set the coefficient with the minus sign (-), then the signals will appear more often. This function may be necessary for traders who trade binary options.
- Second (Contrast-mtf) - in the form of a histogram in a lower window, which shows the values of the indicator from different timeframes. In the settings, you can also specify the coefficient and the values of four timeframes (next 1, next 2, next 3), including the current timeframe:
An important characteristic of the Contrast Indicator is that there is no repainting. Repaint only the value of the current bar and the entire history of the calculated remains valid even after a restart of the indicator or the terminal. Thus, the indicator is well suited for manual test on the history. And, therefore, the order should be opened on the next candle after crossing the lines.
The idea of the Contrast Indicator is based on two principles:
- The future market movement cannot be predicted with a probability of more than 50%
- The current trend will continue with a probability of more than 50%
That is, the probability that the entrance to the deal in the direction of the current trend will bring profit, is always somewhat higher than entering the market at random.
Rules of trade by the Contrast Indicator
- Yellow line crosses red from bottom to top
- A green bar appears on the histogram
- Red line crosses yellow from bottom to top
- A red bar appears on the histogram:
Contrast Indicator gives us directly the signal to enter the position. Thus, it remains for us to calculate the size of the StopLoss and TakeProfit. And of course we need additional filters. Alternatively, you can enter the market only when all 4 timeframes of the histogram show the signal in one direction. This will be the most accurate signal:
Before real trading, you must test it on a demo account.
In the archive Contrast.rar:
- Contrast template.tpl
Free Download Contrast Indicator